Determining taxes in an electronic commerce system

• US 8,818,878 B2
• Filed: 06/27/2006
• Issued: 08/26/2014
• Est. Priority Date: 06/27/2006
• Status: Active Grant

• Current Assignee: Google LLC (Alphabet Inc.)
• Original Assignee: Google Inc. (Alphabet Inc.)
• Inventors: Derby, Herbert G., Chao, Hubert M., Gluzberg, Eugene, Stukenborg, Stephen
• Primary Examiner(s): Hammond, III, Thomas M
• Application Number:
  US11/426,838
• Publication Number:
  US 20070299733A1
• Time in Patent Office: 2,982 Days
• Field of Search: 705 35- 40
• US Class Current: 705/26.1
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0633 Lists, e.g. purchase orders, compilation or processing
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

An electronic commerce system includes a broker that enables customers to purchase items from multiple different merchants. A customer anonymously interacts with the merchants to identify items to purchase, and the merchants provide virtual shopping carts including the item and tax information to the broker. The tax information describes tax rates for the item in multiple jurisdictions. The broker determines the jurisdiction applicable to the customer by, for example, determining a shipping address for the customer. The broker uses the tax information and jurisdiction to calculate the taxes to collect for the item. The broker determines the total cost for the transaction, and conducts an electronic commerce transaction for the item with the customer.

Claims

1. A computer-implemented method of determining taxes in an electronic commerce system, comprising:

receiving, by a broker computer system separate from a merchant, a virtual shopping cart associated with a customer, the shopping cart including a plurality of items identified by the customer for purchase from the merchant and tax information comprising a default tax table, an exception tax table, and indication information indicating for each of the plurality of items whether to use the default tax table or the exception tax table to calculate taxes applicable to the item, the default tax table describing default numerical tax rates applied to commerce transactions and the exception tax table describing special numerical tax rates applicable to certain items each default numerical tax rate and special numerical tax rate associated with at least one jurisdiction;

determining, by the broker computer system, a jurisdiction of the customer;

calculating, by the broker computer system, taxes applicable to the plurality of items responsive to the determined jurisdiction and the tax information; and

executing, by the broker computer system, a commerce transaction for the plurality of items using the calculated taxes.

2. The method of claim 1, wherein executing the commerce transaction comprises collecting the calculated taxes.

3. The method of claim 1, wherein determining the jurisdiction of the customer comprises:

determining a shipping address for the customer.

4. The method of claim 1, wherein the tax information in the virtual shopping cart comprises information describing whether a plurality of different jurisdictions collect taxes on shipping charges.

5. The method of claim 1, wherein the indication information indicates to use the exception table to calculate taxes applicable to an item from the plurality of items, and calculating taxes comprises:

calculating the taxes applicable to the item using the default tax table if the exception tax table lacks a numerical tax rate for the determined jurisdiction of the customer.

6. The method of claim 1, wherein the virtual shopping cart is received from the merchant.

7. The method of claim 1, wherein the virtual shopping cart is received from the customer.

8. A computer program product having a non-transitory computer-readable storage medium having computer program instructions tangibly embodied thereon for determining taxes in an electronic commerce system, the computer program instructions comprising instructions for:

receiving, by a broker separate from a merchant, a virtual shopping cart associated with a customer, the shopping cart including a plurality of items identified by the customer for purchase from the merchant and tax information comprising a default tax table, an exception tax table, and indication information indicating for each of the plurality of items whether to use the default tax table or the exception tax table to calculate taxes applicable to the item, the default tax table describing default numerical tax rates applied to commerce transactions and the exception tax table describing special numerical tax rates applicable to certain items each default numerical tax rate and special numerical tax rate associated with at least one jurisdiction;

determining, by the broker, a jurisdiction of the customer;

calculating, by the broker, taxes applicable to the plurality of items responsive to the determined jurisdiction and the tax information; and

executing, by the broker, a commerce transaction for the plurality of items using the calculated taxes.

9. The computer program product of claim 8, wherein executing the commerce transaction comprises collecting the calculated taxes.

10. The computer program product of claim 8, wherein determining the jurisdiction of the customer comprises:

determining a shipping address for the customer.

11. The computer program product of claim 8, wherein the tax information in the virtual shopping cart comprises information describing whether a plurality of different jurisdictions collect taxes on shipping charges.

12. The computer program product of claim 8, wherein the indication information indicates to use the exception table to calculate taxes applicable to an item from the plurality of items, and calculating taxes comprises:

calculating the taxes applicable to the item using the default tax table if the exception tax table lacks a numerical tax rate for the determined jurisdiction of the customer.

13. The computer program product of claim 8, wherein the virtual shopping cart is received from the merchant.

14. The computer program product of claim 8, wherein the virtual shopping cart is received from the customer.

15. A broker system comprising:

one or more computer processors; and

a non-transitory computer-readable storage medium storing computer program modules configured to execute on the one or more computer processors, the computer program modules comprising;

a communications module for receiving a virtual shopping cart associated with a customer, the shopping cart including a plurality of items identified by the customer for purchase from a merchant separate from the broker system and tax information comprising a default tax table, an exception tax table, and indication information indicating for each of the plurality of items whether to use the default tax table or the exception tax table to calculate taxes applicable to the item, the default tax table describing default numerical tax rates applied to commerce transactions and the exception tax table describing special numerical tax rates applicable to certain items each default numerical tax rate and special numerical tax rate associated with at least one jurisdiction;

a tax determination module for;

determining a jurisdiction of the customer; and

calculating taxes applicable to the plurality of items responsive to the determined jurisdiction and the tax information; and

a transaction module for executing, by the broker, a commerce transaction for the plurality of items using the calculated taxes.

16. The broker system of claim 15, wherein the tax information comprises information describing whether a jurisdiction taxes shipping charges.

17. The broker system of claim 15, wherein the customer indicates a shipping address and wherein the tax determination module comprises:

a jurisdiction determination module for determining the jurisdiction of the customer responsive to the indicated shipping address.

18. The broker system of claim 15, wherein the indication information indicates that the tax determination module uses the exception table to determine taxes for an item from the plurality of items, and wherein the tax determination module is adapted to use the default tax table if the exception tax table lacks a numerical tax rate for the determined jurisdiction of the customer.

19. The broker of claim 15, wherein the merchant is in a different domain than the broker system.

20. The broker system of claim 15, wherein the tax determination module comprises:

a tax tables module for holding the default tax table and the exception table; and

a tax calculation module for analyzing the tax information to determine whether to use the default tax table or exception table for calculating the taxes.

21. The broker system of claim 15, wherein the virtual shopping cart is received from the merchant.

22. The broker system of claim 15, wherein the virtual shopping cart is received from the customer.